KARACHI: China is poised to take over operational control of a strategic deep-water Pakistani seaport that could serve as a vital economic hub for Beijing and perhaps a key military outpost, according to officials.

The construction of the port, in the former fishing village of Gwadar in troubled Balochistan province, was largely funded by China at a cost of about $200 million. It has been a commercial failure since it opened in 2007, because Pakistan never completed the road network to link the port to the rest of the country.

Chinese control of the port would give it a foothold in one of the world’s most strategic areas and could unsettle officials in Washington, who have been concerned about Beijing’s expanding regional influence.The port on the Arabian Sea occupies a strategic location between South Asia, Central Asia and the Middle East. It lies near the Strait of Hormuz, gateway for about 20 per cent of the world’s oil.China’s interest is driven by concerns about energy security as it seeks to fuel its booming economy. It wants a place to anchor pipelines to secure oil and gas supplies from the Gulf. Beijing also believes that helping develop Pakistan will boost economic activity in its far western province of Xinjiang and dampen a simmering, low-intensity rebellion there.Some experts view Gwadar as the westernmost link in the ”string of pearls,” a line of ports from China to the Gulf that could facilitate expansion of the Chinese Navy in the Indian Ocean. That has sparked concern in both the US and India.

Pakistan’s Cabinet agreed Wednesday to a proposal for a company owned by the Chinese government, China Overseas Port Holdings Limited, to purchase control of the port from Singapore’s PSA International Pte Ltd., which won a bid in 2007 to operate the port for 40 years. The transaction has not yet occurred, a spokesman for Pakistan’s Ministry of Ports and Shipping, Mohammed Raza, said Friday.Pakistan views China as one of its most important allies and a counterweight to the United States, which has given Islamabad billions of dollars in aid but is often viewed as a fickle taskmaster.China is expected to pay $35 million for control of the port to PSA and two other groups that own an interest, said Aqeel Karim Dhedhi, one of the other shareholders. The third shareholder is the National Logistics Cell, which is controlled by the Pakistani army. The Chinese are waiting for a Pakistani court case challenging PSA’s control of the port to be dismissed to complete the transaction, Dhedhi said.A senior Pakistani official said Beijing has agreed to spend hundreds of millions of dollars to finish a 900-kilometer (550-mile) road that would link the port with Pakistan’s north-south Indus Highway, facilitating overland transport from Gwadar to China. The Pakistani government was supposed to complete the road in 2012, but it is only 60 per cent finished, said the official, speaking on condition of anonymity because he was not authorized to talk to reporters.

It will still be a tough drive, passing along the Karakorum Highway that winds through the rugged mountains of northern Pakistan and then into Xinjiang province via a border crossing point at an elevation of 4,693 meters (15,397 feet). The path is often blocked by snow in winter.

Even so, the route will cut the overland distance from China’s western provinces to the sea in half, from about 4,000 kilometers (2,500 miles) to China’s east coast, to just 2,000 (1,250 miles) south to Gwadar.Longer-term plans also call for road and rail links from Gwadar that would pass through strife-torn Afghanistan to energy-rich Central Asian states. Asked about the port on Thursday, Chinese Foreign Ministry spokesman Hong Lei said ”as long as projects are conducive to China-Pakistan relations, the Chinese side will positively support them.”

The port is operating at only about 15 per cent capacity now, and machinery originally installed by China is rusting for lack of use, said a Pakistani port worker, speaking on condition of anonymity because he was not authorised to talk to reporters.

On a purely economic basis, the level of trade through the port should be zero because of its drawbacks, but the government is spending millions of dollars in subsidies to ship fertiliser through the facility. It would be cheaper to send the shipments through the coastal city of Karachi, 700 kilometers (430 miles) to the east, the worker said.

Some government officials have claimed that violence in Balochistan has prevented them from completing the road network. Baloch nationalists have waged a decades-long insurgency against the government, demanding greater autonomy and a larger share of the province’s natural resources.

What happened over last 5 years is something we will never go back on. I do recall there were at least 3-5 oil refineries planned for the gwadar port by the gulf countries but all went down the drain with arrival of yanks and pro yanks policy which allowed Baluchistan to get out of hand to extent that gwadar is now dead. It will take some efforts to bring it to life again.

Let us hope things do turn around for good and I guess chinese are now seeing that Yanks will leave the region and their plan for gwadar is back in action again.

Pakistan came into being on August 14, 1947. As the Creator willed it, the date corresponded with the empowering night of Ramadan 27 of the year 1366 after the Prophet’s Hijra. Its great destiny was thus set from the start

If we take our inspiration and guidance from the Holy Qur’an, the final victory, I once again say, will be ours… Do not be overwhelmed by the enormity of the task… You only have to develop the spirit of the Mujahids. You are a nation whose history is replete with people of wonderful character and heroism. Live up to your traditions and add to another chapter of glory. All I require of you now is that everyone… must vow to himself and be prepared to sacrifice his all… in building up Pakistan as a bulwark of Islam and as one of the greatest nations whose ideal is peace within and peace without… Islam enjoins on every Mussulman to give protection to his neighbors and to minorities regardless of caste and creed. Muhammad Ali Jinnah

Terrible news for the Yanks. I'm sure Yanks are going to put every effort in trying to spoil Gwadar becoming a success. Pakistan should go ahead and team up with China. This is excellent news after a long time.

BANGALORE (Reuters) - China's role in operating a strategically important port in Pakistan is a matter of concern for India, its defence minister said on Wednesday, as New Delhi and Beijing jostle for influence in the region.Indian policy-makers have long been wary of a string of strategically located ports being built by Chinese companies in its neighbourhood, as India beefs up its military clout to compete with its Asian rival.Management of Gwadar port, around 600 km (370 miles) from Karachi and close to Pakistan's border with Iran, was handed over to state-run Chinese Overseas Port Holdings last week after previously being managed by Singapore's PSA International."It is a matter of concern to us," Indian Defence Minister A.K. Antony told reporters when asked about Chinese control of the port.When complete, the port, which is close to the Strait of Hormuz, a key oil shipping lane, is seen opening up an energy and trade corridor from the Gulf, across Pakistan to western China, and could be used by the Chinese Navy, analysts say."It will enable (China) to deploy military capability in the region," said Jay Ranade, of the Centre for Air Power Studies and a former additional secretary at the government of India. "Having control of Gwadar, China is basically getting an entry into the Arabian Sea and the Gulf."China has also funded ports in Hambantota, Sri Lanka, and Chittagong in Bangladesh, both India's neighbours."Gwadar is a more serious development than the others," Ranade said, as the Pakistani port gives China base facilities.A Pakistani foreign ministry official told Reuters that the port was none of India's business."India has no concern with whoever Pakistan decides to work with on Gwadar," said the official, who declined to be identified. "We first had a deal with Singapore but that didn't work out as desired. Singapore's PSA International and the Chinese have settled the deal."China and India fought a brief border war in 1962. Chinese Foreign Ministry spokesman Hong Lei said last week that Gwadar was a commercial project, part of long-standing bilateral cooperation. "China will actively support any programme that benefits China-Pakistan relations and the prosperity of Pakistan," he told reporters.India, the world's biggest arms importer in recent years, plans to spend around $100 billion over the next 10 years in upgrading its mostly Soviet-era military hardware to keep pace with China's ramping up of defence spending.The country was bound to modernise its armed forces in response to China's own modernisation, Indian Defence Minister Antony said at an air show in the southern city of Bangalore, adding that strengthening its north-eastern border with China was not a confrontation with its neighbour."It is our duty. If they are doing it, we will also do it," said Antony, adding that the presence of a Chinese delegation at the show was a "welcome step", without elaborating.Despite the push to overhaul its military, India's defence budget would not escape a tightening of government spending this year, Antony said, as New Delhi looks to rein in its fiscal deficit."Our priority areas will not face budget cuts. Those essential to operational preparedness, there won't be any budget cuts," Antony said.A long-awaited deal for India to buy 126 Rafale fighter jets from France's Dassault Aviation was being reviewed by a cost negotiation committee, Antony said, adding that the delay in finalising the deal was not due to budget cuts.India selected the Rafale from several options and entered into exclusive talks with Dassault for the $15 billion contract more than a year ago.(Additional reporting by Mehreen Zahra-Malik in ISLAMABAD; Writing by Henry Foy; Editing by Matthias Williams and Nick Macfie)

I remember very well when India desperately tried to stop the RD-93 engine sale from Russia to China for the JF-17 Thunder aircrafts. President Putin personally intervened and approved the sale. What a slap that was in India's face.

if Pakistan does anything and becomes a pain in the a.s.s. for new delhi, washington, london and bruxelles then surely Pakistanis wholeheartedly know that's the interest, succes, intregrity and development of Pakistan.

I think India is given too much credit &amp; weight age here in PDF. Indian arms deals are corruption ridden. If Pakistan had the same money, it will get the best F16 from the US. US offered India with F18 &amp; F22, but India rejected them &amp; is going with French Rafale's. What a joke!
They seem to be speaking of such deals for ages with nothing on the ground.
Corrupt Indian politicians are its worst enemies.
Pakistan should not have given this deal to China either. Why not Pakistan run it instead? China will get a ship load of Chinese to work here.
Balochi's should instead.

According to media reports, the federal cabinet has approved the transfer of Gwadar Port from PSA Gwadar Pte Ltd to China. The news of the cabinet decision has generated some discussion in the press. However, it is felt that most of the writers are not fully aware of the subject and therefore, the reports are misleading and lacking objective analysis. The new deal with the Chinese company is likely to take place soon, it is, therefore, vital to understand and review the entire issue.

Firstly, the current Port Operator/ Concession Holder&rsquo;s name is incorrectly being reported in the media as &ldquo;Port of Singapore Authority&rdquo;. The existing port operator is a Special Purpose Vehicle named PSA Gwadar Pte Ltd created exclusively for this purpose (Interestingly, the company did not exist even at the time of bidding and the bidding was done by its &ldquo;sponsors&rdquo;). The name Port of Singapore Authority does not appear anywhere in the Concession Agreement.

There are two different impressions being given in the press: First, the government of Pakistan is revoking the agreement with PSA due to its non-performance and secondly, some writers are also suggesting that the PSA is backing off the agreement because the government failed in its commitments. Both the impressions are not entirely correct. The fact is that the Agreement is challenged in the Supreme Court. Both parties knew that the Agreement is mala fide and could easily be struck down by the honourable court. In addition, the names of culprits involved in this scam would also be brought to the book. It was, therefore found convenient to settle the issue outside the court.

Some politically motivated people are also suggesting that the local population is against the project, which is not true. The author visited Gwadar very recently and the local population is fully aware of the benefits of the port. However, some separatist elements, from the tribal Baloch are raising voice against the port on behest of some entities which are averse to progress in this region.

Gwadar port is an extremely important project both from economic as well as from strategic point of view. If handled properly this port has the potential to transform not only Makran and Balochistan but it can contribute significantly in the economy and security of the country in the long run. It is, therefore, imperative that this national mega project is handled with sincerity and above all politics.

Presently, the deal is between PSA Gwadar Pte Ltd and the Chinese for transfer of their rights/shares to the Chinese company, GPA (Gwadar Port Authority) is not even involved in the negotiations.

While the Chinese should have been the first choice to operate the port and the development is welcomed, there is a need to revisit the Agreement. Since the Concession Agreement was prepared unscrupulously there are some lacunae that must be rectified. For example: It appears from the Agreement that the rights, powers, functions and obligations of GPA have been surrendered in favour of a private foreign entity.

Under GPA ordinance even GPA is not totally free to determine the scale of tolls, dues, rates and charges as all such charges require prior approval of the federal government and then required to be notified in the Official Gazette. In this case a foreign entity has been given a carte blanche to not only operate the port and its facilities but to also determine the above mentioned charges at its sole discretion.

Highly favourable concessions have been granted to the Concession Holder which include tax holiday for a period of 20 years; exemption from income tax; exemption from sales tax; exemption from all the provincial and local taxes, duties, charges and levies etc for 20 years; exemptions on import duties and sales tax on materials and equipment for construction and operations for the entire duration of the Agreement (at least, 40 years); permission to vest right, title and interest in the land comprising the Concession Area including the land to be reclaimed in future; full autonomy to the Concession Holder in respect of collection and fixing all port rates and tariffs; prohibition of trade unions in the entire Concession Area etc. Some of these concessions are in direct contravention of the existing rules.

The transfer and vesting of immovable property of Gwadar Port in favour of the Concession Holder is also contrary to applicable law and against the public and national interest.

The Concession Holder is required to pay a measly sum of nine percent of its Gross Revenue from the Terminal Services to GPA for the entire 40 years term. Whereas, the GPA is responsible for the drudging of the channel and the turning basin which is a very costly exercise. In addition, GPA was made responsible for construction of breakwater, berth-side dredging; financing of access roads and wave, current and sedimentation studies etc.

The above are just a few glaring examples. Study of the Concession Agreement reveals that the Agreement is heavily prejudiced against the Pakistani government and lends extraordinary discretion to the Concession Holder and financial liability of the GPA for many years. The entire thrust of PSA Gwadar Pte Ltd and its partners (Abdul Karim Dhedhi and National Logistics Cell) seemed on acquiring several thousand acres of government purchased land free of cost and commercializing it for substantial profits. Even some members of National Assembly and the previous Chief of the Naval Staff expressed their reservations against the Agreement.

It is also worth mentioning that the Concession Holder failed to attract even a single commercial ship to the port since it took over operations in 2007. But the government, instead of taking any action against the company provided business to the company by diverting Karachi bound cargo to Gwadar causing substantial loss to the public exchequer. It is stated that millions of metric tons of cargo has been diverted to Gwadar port, and the government of Pakistan had to pay an additional Rs.2500 per ton in transportation costs.

Operationalizing of Gwadar port is also in the interest of China. If China diverts its Xinjiang bound cargo to Gwadar it can open up avenues for much needed progress and prosperity in Makran and Balochistan. The decision of handing over the port operations to China should, therefore, be supported. However, handing over the port under the same terms and conditions to the new company is not advisable. Following recommendations may be considered before transfer of the port is executed:

The Concession Agreement needs revision. Articles in contravention of the regulations or against public interest be removed/ replaced.

Handing over an entire strategic asset to a foreign entity is not wise. The government of Pakistan/ GPA should be a share-holder in port operations. In this way the government will be able to maintain its control on the port as well as gain valuable experience.

Provision should be made for allowing other companies, as well, to construct/operate terminals. It will generate competition and we will not be dependent on one entity for port operations. This concept is already working well in Karachi/ Port Qasim.

Efforts should be made to build the requisite infrastructure at war footing. Without the required infrastructure and rail/road access the port cannot deliver.

Those responsible for the delay in operationalizing of the port and the loss to the public exchequer be brought to justice.The Balochistan government and the local population must be taken in confidence.

Gwadar port is an extremely important project both from economic as well as from strategic point of view. If handled properly this port has the potential to transform not only Makran and Balochistan but it can contribute significantly in the economy and security of the country in the long run. It is, therefore, imperative that this national mega project is handled with sincerity and above all politics.

The port will remain property of Pakistan and the Chinese company will share the profit.

ISLAMABAD (Dunya News) - Pakistan Monday inked agreement to hand over Gwadar Port to Chinese company.
Under the agreement the Chinese company will assume the responsibility of Gwadar Port from immediately. The port will remain property of Pakistan and the Chinese company will share the profit.
Chairman Gwadar Port Authority Dr Syed Pervez Abbas&sbquo; Major General Asghar Nawaz of National Logistics Cell&sbquo; Chairman AKD Security Aqeel Karim Dhedi and Leo Fong of China Overseas Port Holdings Limited and Singapore Authority representative Faisal Javed signed on the agreement on behalf of their respective organizations.

According to the agreement China besides establishing a Free Economic Zone will construct a road from Gwadar to Ratho Dhero.

Lets see how all of this turns out to be for Pakistan for the rest of this this decade. I am very optimistic about all this and I am really looking forward to it.

To me it's like when the Soviets extended their oil branch to Pakistan in the 1950's and 1960s, but Pakistan's greedy, short-sighted Tyrant Ayub Khan went running to United States instead. What a half-a-century long catastrophic blunder that turned out to be for Pakistan.

In the last 5 years, the United States has tried very very hard to contain Pakistan and has tried to make sure Pakistan does not fall into the Chinese camp, but Pakistan has. The decisions have been carefully thought through and made in the best interests of Pakistan. I mean why put all your eggs in a risky basket thousands of miles away when there are so many baskets available closer to home?

Of course, all of this has only been possible under a people's democracy.

Watch how Pakistan's transport and energy sectors suddenly get upgraded to amongst the best in the world.

ISLAMABAD: China took control of Pakistan’s Gwadar port on Monday as part of its drive to secure energy and maritime routes that also gives it a potential Arabian Sea naval base, sparking Indian concern.

“The contract of operation of Gwadar port is formally given to China. Today, the agreement is transferred from the Port of Singapore Authority to China Overseas Ports Holding Company Limited,” President Asif Ali Zardari announced.

“The award of this contract opens new opportunities for our people… It gives new impetus to Pakistan-China relations,” added Zardari in a speech broadcast live on television.

On January 30 the Pakistani cabinet approved the transfer of Gwadar, currently a commercial failure cut off from the national road network, from PSA International to the state-owned China company.

The Pakistanis pitched the deal as offering an energy and trade corridor that would connect China to the Arabian Sea and Strait of Hormuz, a gateway for a third of the world’s traded oil, overland through an expanded Karakoram Highway.

Experts say it would cut thousands of kilometres off the distance which oil and gas imports from Africa and the Middle East have to travel to reach China.

China paid about 75 per cent of the initial $250 million used to build the port but in 2007 PSA International won a 40-year operating lease.Then-ruler Pervez Musharraf was reportedly unwilling to upset Washington by giving control of the port to the Chinese.

On February 6 Indian Defence Minister AK Antony said New Delhi was concerned by Pakistan’s decision to transfer management of the deep-sea port to China, which has interests in a string of other ports encircling India.

Wonder how much money Zardari stole from this contract ....... knowing this $w!ne$ greed, probably all of it!!

........ when the first drop of a Munafiq's blood drops in the Kaa'bah ........

........ the Black Flags Army shall rise from Khurasan and commence its earth rumbling march toward Damishque. Any force that tries to come in its path, shall be destroyed with ruthless destruction. Awaiting, upon reaching Damishque, the safron and beads of pearls and the Black Turban that shall lead the Salah of Fajr .........

........ the stones and trees of Lud shall cry out to the Black Flags and tell them of the Munafiqs, Yahuds and Kuffar that are hiding behind them, to come and kill them. That day shall be the day of reckoning, the day of justice, the day when no power shall hold and unfair advantage. The battle shall be fought and won by way of faith ........

i have famillymembers in Norway, Oslo - who work at offshore oil and gas platforms, and few of them are oil engineers.
Sometimes they're stationed in refineries located in different Arab countries, especially UAE.

This is inside information; Statoil, which is top 10 among the top leading oilcompanies in the world - REALLY wants to open a base in Gwadar as well.
There are two possibilities at the moment:
a) either they'll join very soon because China has jumped in the project. It's typical because generally speaking everytime China makes a move or decision, the west wants to compete or beat it's chest to mark it's dominance.
or
b) waiting for improvement of political, security and financial stabillity in Pakistan.

NOT only China or Norway are willing to invest in Gwadar, but every potentiel investor is just drowling to gain huge profits from the massive trade-flow in the region.

E.g. in the Arab areas where oil cooperations are going with other western oilcompanies, are looking on the situation in Gwadar because the new port and refinery is a competetion for the nearby Arab countries. As far i'm informed - not sure though - the Chinese investment in Gwadar is massive compared to other neighbouring Arab countries.

Another issue is the port for cargo shipments will be direct competetor to Jebel Ali Port - UAE - which is located almost parallel to Gwadar.
Jebel Ali Port has no import taxes and the cargo shipments is mostly known to be connecting western and Eastern countries. The downside is, the west has no money as it used to have. Apart from that, the western companies have moved their production lines and factories to the East and importing back to the west. In other words, there are more cargo chipments going towards the westn than the East.

But Gwadar's role will be exports and imports from African countries through Pakkistan, to Central Asia, Russia and China - and vice versa. This region and the whole African Continent are filled with enriched materials and all endorse each other that they have be independent from western regimes who have the mindset of master and slave.

UAE have many western CNC skilled manpower and engineers who operate on their located bases, to build some joints and parts for e.g. oilplatforms like Statoil does.
It won't be a surprise if they moved their technical facilities to Pakistan, Gwadar because - let me point another fact, the skilled trained labour technicians working for Statoil or any western oilcompany or in the ebel Ali Port in UAE are South Asians, majority of them are Pakistanis, Sri Lankan, Bangladeshis and indians. Arabs don't work at all compared to the South Asian workers.

The low paid and cheap labour Pakistanis can easily be shifted to Gwadar and carry out the same work for even less wages. If compared with the currency; UAE Dirham and Norwegian Crownes gives more in Pakistani Rupees, than lets say Norwegian Crownes converted to UAE Dirhams.
There is a lot of money to save by shifting a company to Gwadar and still holding focus on the Middle Eastern market, Central Asian market and China. At the same time, keeping the same output and productivity for the western markkets.

it's really a win-win situation.

On Iran; i believe that Iran hasn't got any direct trading flow with the western markets and Middle East. Via Gwadar it can export massively to African countries, Central Asia, China and also to the west.
I wont be surprised at all if western companies begin to open their bases, get in contact with Iranian companies to gain profits.
Lets not forget Iran has got a lot of money and oil.

I can sayy, Alhamdulilah that Gwadar finally opened and INSHALLAH INSHALLAH INSHALLAH INSHALLAH INSHALLAH INSHALLAH INSHALLAH will become a SUCCES!!

Will China&rsquo;s takeover of Pak&rsquo;s Gwadar port be a game changer?by Rajeev Sharma Feb 4, 2013

China getting operational control of Pakistan&rsquo;s highly strategic Gwadar port is indeed a serious matter for India which warrants a full-fledged meeting of the Cabinet Committee on Security (CCS) to thrash out an appropriate Indian response. But the question is: has China bitten more than it can chew? Is China playing with fire?

Let this question wait for a while. Let us first talk about the implications of the Chinese take-over of the Gwadar port operations from Port of Singapore Authority (PSA) which had been managing the operations for the last five years and was supposed to continue to do so for 45 years more.

The implications are not just regional, but global. The affected countries, apart from India (and naturally China and Pakistan), are Iran, the United Arab Emirates and the United States.

India

India is the immediate and most affected party as the Sino-Pak move would give an unprecedented strategic depth to Pakistan which this country has always desired but never got &ndash; developing a port far away from the Indian military reach to give Pakistani forces valuable additional response time in case of a military conflict.

Disturbingly, Chinese control of Gwadar provides China a key listening post to observe the Indian naval activities around the Persian Gulf and Gulf of Adan.

The Gwadar port, if fully operationalised, will wean Pakistan away from near-total dependence on Karachi, which is much closer to India and hence within the Indian military&rsquo;s strike range.

The Indian Navy had performed a stellar role during the 1971 India-Pakistan War and strait-jacketed Karachi. Pakistan&rsquo;s trade is 95% through the

China operating the Gwadar port will be of threat to India. AFPsea, most of which was facilitated through the Karachi port alone. Even today Pakistan is dependent on Karachi port for as much as 68% as far as its exports and imports are concerned. But this will change significantly once the Pakistanis have a fall back option in an alternate port like Gwadar, a warm water port in the Arabian Sea far away from the Indian mainland. Gwadar is 400 kms away from India which will inevitably give Pakistanis crucial time for military response in case of a military conflict with India.

Iran

For Iran, the development would be a severe setback as it would be a rival to two of its main ports &ndash; Chabahar and Bandar Abbas. Gwadar would pose a serious challenge to Iran&rsquo;s near-monopoly to serve as an important link for landlocked Central Asian states to world markets.

Though Ali Akbar Walaiti, top foreign policy aide of Iranian Supreme Leader Ayatollah Ali Khamenei and also a former foreign minister, went on record as saying in Quetta last week that his country is not trying to sabotage the Gwadar port development and maintained that Tehran supported Pakistan&rsquo;s decisions, his averments should be taken with a pinch of salt.

The UAE

For the United Arab Emirates too Gwadar becoming operational will be bad news. This is one bit of strategic input which Pakistan has either ignored or undermined in its haste to get the Chinese on board in controlling day-to-day operations of the Gwadar port. The UAE, considered friendly to Pakistan, considers Pakistan a rival when it comes to the Gwadar port.

The UAE has traditionally looked at the Gwadar project, since its infancy almost a decade ago, as a project which will inevitably undermine UAE&rsquo;s commercial interests by taking trans-shipment business away from the port of Dubai. Incidentally, UAE is also one of the financiers of the Baloch Liberation Army (BLA).

According to WikiLeaks, former chief of Pakistan&rsquo;s Inter Service Intelligence (ISI), while briefing Pakistani parliamentarians, claimed that India and the UAE were funding and arming the Baloch. Informatively, the infamous Shamsi Air Base in Balochistan, from where the US has been operating drones, was built by UAE Sheikhs and handed over to the US.

The US

The Chinese presence in Gwadar would be a serious threat to the US Fifth Fleet in the Middle East. Besides, the development is a red rag to America&rsquo;s strategic and energy security interests as the Chinese presence in Gwadar would enable Beijing to pose an interception threat to the strategic oil trade to the Far East and Europe as Gwadar is very close to the Hormuz Strait, the international water body from which 13 million barrels of oil is transported every day.

Besides, the Chinese presence in Gwadar will make the US vulnerable militarily as it will serve as a listening post for the Americans. A Chinese-controlled Gwadar port will enable the Chinese to intercept military communications from the US military bases on the Arabian Peninsula.

In the event of a military conflict, Gwadar can serve as an effective alternate route for the Chinese trade in the Indian Ocean and to West Asia if Malacca Strait is blocked by the US. Ensconced in Gwadar, China can monitor the sea-lanes from the Persian Gulf as about 60% of Chinese energy requirements come from the Persian Gulf and transit along this sea-lane.

Strategic Leverage for China

For China, Gwadar port will be a long-term strategic dream comes true, only if the unfolding events were to play to the Chinese script which is obviously not in the Beijing&rsquo;s hands. It will give China a land-based oil supply port that is not controlled by superior US naval power.

The biggest strategic leverage that operational control over Gwadar port affords to China is that it gives China a land-based oil supply port that is not controlled by the superior US naval power. Besides, it would become a vital cog in the planned Pakistan-China energy corridor as it would bring back to life China&rsquo;s old idea, abandoned in 2009 because of volatile security situation in Balochistan, of constructing an oil refinery in Gwadar with a total capacity of close to 20 million tonnes per year.

China plans to link the proposed Gwadar refinery to Kashghar in western China by pipeline which help it avoid the Strait of Malacca and the dangerous maritime routes through the South China Sea, the East China Sea and the Yellow Sea.

China&rsquo;s eastern seaboard ports are 3,500 kilometres away from Kashgar. In comparison, the distance from Kashgar to Gwadar is only 1,500 kilometres. Thus Gwadar would give western China the much-needed access to the sea. This would mean that through the trump card called Gwadar, China would be able to have crude oil imports from Iran, the Gulf and Africa transported overland to north-west China.

An additional bonus for China would be that Gwadar will also enable maneuvering capability in the Indian Ocean and a naval presence in the Indian Ocean sea lanes though China is not an Indian Ocean power.

Dangers Ahead for China

China would be making a large number of enemies, overt and covert, through their Gwadar act. These actors will inevitably be thirsting for the Chinese blood through state or non-state means.

Ironically, Gwadar&rsquo;s proximity and planned linkage to Kashgar is a potential high-risk gamble for China. Kashgar is situated in Xinjiang, China&rsquo;s biggest but most sparsely populated administrative region. The Muslim-dominated Xinjiang is China&rsquo;s Achilles&rsquo; heel, given the fact that it is already a breeding ground for jihadist forces.

By taking over the operational control of Gwadar port, China may have actually disturbed a beehive. Not unlike the American adventurist foreign policies all over the globe in the past decades, China may have taken the first step towards importing other nation&rsquo;s domestic problems.

The fiercely separatist Balochs, who already see the Chinese as a thorn in their flesh ever since Beijing started its involvement with the Gwadar project about a decade ago, may now come out openly against the Chinese. This could mean a self goal for the Chinese. They have taken over a larger responsibility in Gwadar port with the hope of connecting it to Kashgar (Xinjiang) to reap economic dividends. But they may actually end up in making their soft underbelly called Xinjiang more vulnerable to the jihadist threat.

The Chinese take-over of Pakistan&rsquo;s Gwadar port may well be a strategic game changer; but only time will tell for whom the bell tolls.//**************************************************************************************For the time being, be prepared for a spurt in violence in Balochistan, the fires of which would initially be singing Pakistan but then China won't be far beyond.//**************************************************************************************The writer is a journalist-author and a strategic affairs analyst

ISLAMABAD: China took control of Pakistan&rsquo;s Gwadar port on Monday as part of its drive to secure energy and maritime routes that also gives it a potential Arabian Sea naval base, sparking Indian concern.

&ldquo;The contract of operation of Gwadar port is formally given to China. Today, the agreement is transferred from the Port of Singapore Authority to China Overseas Ports Holding Company Limited,&rdquo; President Asif Ali Zardari announced.

&ldquo;The award of this contract opens new opportunities for our people&hellip; It gives new impetus to Pakistan-China relations,&rdquo; added Zardari in a speech broadcast live on television.

On January 30 the Pakistani cabinet approved the transfer of Gwadar, currently a commercial failure cut off from the national road network, from PSA International to the state-owned China company.

The Pakistanis pitched the deal as offering an energy and trade corridor that would connect China to the Arabian Sea and Strait of Hormuz, a gateway for a third of the world&rsquo;s traded oil, overland through an expanded Karakoram Highway.

Experts say it would cut thousands of kilometres off the distance which oil and gas imports from Africa and the Middle East have to travel to reach China.

China paid about 75 per cent of the initial $250 million used to build the port but in 2007 PSA International won a 40-year operating lease.Then-ruler Pervez Musharraf was reportedly unwilling to upset Washington by giving control of the port to the Chinese.

On February 6 Indian Defence Minister AK Antony said New Delhi was concerned by Pakistan&rsquo;s decision to transfer management of the deep-sea port to China, which has interests in a string of other ports encircling India.

A long march starts with a single step and all human endeauver, without exception, have humble beginnings. Shanghai, Hong Kong were at one time far more sparely than Gwadar today. So don't feel bad, my friends. Given time, Gwadar could rank among the best marine terminals in the world.

A long march starts with a single step and all human endeauver, without exception, have humble beginnings. Shanghai, Hong Kong were at one time far more sparely than Gwadar today. So don't feel bad, my friends. Given time, Gwadar could rank among the best marine terminals in the world.

No Doubt About that and its a Smart Move for future ....... and its in favour of Pakistan to have trade with regional partners rather then far reach west . Pakistan also and should consider giving some access to Russia for Goods ( bound for middle east and africa) trade through Karachi or nearby ports .....in return of Pakistan own interest ...

No Doubt About that and its a Smart Move for future ....... and its in favour of Pakistan to have trade with regional partners rather then far reach west . Pakistan also and should consider giving some access to Russia for Goods ( bound for middle east and africa) trade through Karachi or nearby ports .....in return of Pakistan own interest ...

That's a good point. Russia and other neighbors must be engaged to conduct commerce through Gwadar. This would be a goodwill gesture towards Russia for healing old wounds. Of course, this is a long term goal. Initially, China along with Pakistan would have to kick-start as well as finish off the remaining bits of the project. Once the port is running at a decent capacity and showing the desired results one can perhaps start engaging others. Basically, the onus is on Pakistan for promoting trade and commerce through its ports. Chinese influence could also be sought in this regard. A prerequisite for turning Gwadar into a success is having honest, smart and cunning leadership. There are certain ill wishers that would seize every opportunity to spread unrest and bloodshed in Baluchistan. We've already seen it happen. One requires highly skilled leadership which is able to thwart such designs as well as guide the project towards success. Gwadar faces some challenges, but they can certainly be overcome. More critical is to involve the locals into the project. Jobs must be provided to the locals. The locals must feel that the project belongs to them. The locals must feel that they're the beneficiaries of the project. Once the security is improved and the miscreants cornered, Gwadar can truly prosper. Thankfully, Pakistan has the help of a great friend China!

if GOP seriously thinks something better for Pakistan, this is the opportunity to make Baluchistan Not only trade through Gwadar also to set up small industries with the help of China and with Chinese investments .

^^ Do you wanna know what we True-Greens really like ....... True-Green Patriot-Pakistanis want each and every one of those thugs and criminals in Gilget-Baltistan, Punjab, Sindh, Baluchistan & Pukhtunkhwa who were rigging the Votes to be given 1000 lashes each, in public and then sent to prison permanently.

Pakistanis want Zardari, his family, his associates stripped of their Pakistani Citizenship, their properties & wealth confiscated, and deported from Pakistan, banned from Pakistan permanently.

Pakistanis want the imprisonment of news anchors of geo, ary and other channels who promote aman-ki-asha, and those channels shutdown permanently.

Pakistanis want all indian channels, bollywood movies and music banned permanently in Pakistan.

Pakistanis want all corrupt Judiciary members to stripped of their positions and banned from politics and judiciary offices in Pakistan, permanently.

Pakistanis want all american, british, australian and other foreign anti-Pakistani elements, thrown out of Pakistan permanently. And if they attempt to return to Pakistan, that they be ordered to be shot onsite, when found.

Pakistanis want all corrupt businesses, who contrive inflation in the country, to be imprisoned and their illegally acquired wealth, returned to the Treasury, effective immediately.

Pakistanis want the immediate halt of all drone-strikes on Pakistani soil. And the executive order to Pakisan Military to shoot down any foreign aircraft which are used to fire into our territory.

Pakistanis want all country's actors, actresses, musicians, athletes, artists, fashion icons and other prominent members, to be banned and barred from visiting india.

That's what Pakistanis want!

........ when the first drop of a Munafiq's blood drops in the Kaa'bah ........

........ the Black Flags Army shall rise from Khurasan and commence its earth rumbling march toward Damishque. Any force that tries to come in its path, shall be destroyed with ruthless destruction. Awaiting, upon reaching Damishque, the safron and beads of pearls and the Black Turban that shall lead the Salah of Fajr .........

........ the stones and trees of Lud shall cry out to the Black Flags and tell them of the Munafiqs, Yahuds and Kuffar that are hiding behind them, to come and kill them. That day shall be the day of reckoning, the day of justice, the day when no power shall hold and unfair advantage. The battle shall be fought and won by way of faith ........

What we need to address is the security around Gwadar. Make it layered and impregnable, affording a stable growth of Gwadar. Another very important thing which needs to be addressed from both a security stand point, as well as, economic one. And that is to secure the highway network connecting Gwadar with the rest of Pakistan.

........ when the first drop of a Munafiq's blood drops in the Kaa'bah ........

........ the Black Flags Army shall rise from Khurasan and commence its earth rumbling march toward Damishque. Any force that tries to come in its path, shall be destroyed with ruthless destruction. Awaiting, upon reaching Damishque, the safron and beads of pearls and the Black Turban that shall lead the Salah of Fajr .........

........ the stones and trees of Lud shall cry out to the Black Flags and tell them of the Munafiqs, Yahuds and Kuffar that are hiding behind them, to come and kill them. That day shall be the day of reckoning, the day of justice, the day when no power shall hold and unfair advantage. The battle shall be fought and won by way of faith ........

Hakim Bey: Don't just survive while waiting for someone's revolution to clear your head
Napoleon Bonaparte: The world suffers a lot, not because of the violence of bad people, but because of the silence of good people!